SpaceX's stock fell 16% on Monday, closing at $154.60, marking the lowest level since its trading debut. This decline extends a three-day loss to 23%, wiping out over $600 billion in market value and leaving the company's market capitalization just above $2 trillion.
SpaceX's initial public offering (IPO) was met with significant volatility, typical of new IPOs with a low float and high retail interest. With only 4.2% of shares available for trading on the first day, the stock remains 15% higher than its $135 IPO price, maintaining its position as the sixth-largest company globally.
The company is seeking to raise at least $20 billion through its first bond offering, as reported by Bloomberg. Additionally, SpaceX has secured a multibillion-dollar deal to provide computing resources to Reflection AI, an AI startup, further solidifying its commitment to artificial intelligence.
“Sellers are back in control. Anyone in the world who wanted to buy this has bought it already.”
Michael O’Rourke, Chief Market Strategist at JonesTrading
Retail investors have shown strong interest in SpaceX, purchasing a net $405 million in the first five trading sessions, according to Vanda Research. Despite Monday's losses, retail traders continued to be net buyers, although with reduced inflows compared to the previous week.
KeyBanc Capital Markets initiated coverage of SpaceX with a sector weight recommendation, indicating that while SpaceX leads in space-launch and related sectors, much of its long-term value is already reflected in its current stock price.
“SpaceX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced, in our view.”
Michael Leshock, Analyst at KeyBanc Capital Markets
Background
SpaceX's recent developments in AI and its market performance are closely watched as competitors Anthropic PBC and OpenAI prepare for their IPOs, expected to value around $1 trillion.
Investors will continue to monitor SpaceX's strategic moves and market reactions, especially in the context of its AI ventures.
